Exxaro Resources (EXX) H2 2024 earnings summary

Executive summary

• Revenue increased 5% to R40.7 billion, driven by higher coal export volumes and domestic prices, despite a 13% drop in benchmark export coal prices.

• EBITDA declined 22% to R10.4 billion, with headline earnings per share down 36% to 3,016 cents, reflecting lower coal prices and higher costs.

• Maintained a strong safety record with 28 consecutive months without work-related fatalities and a lost time injury frequency rate of 0.06.

• Significant social investments, including a R2.1 billion social spend, a new wage agreement, and retention of BEE/BBBEE status.

• Advanced decarbonisation and renewables, with a decarbonisation roadmap and progress on major wind and solar projects.

Financial highlights

• Group revenue rose 5% year-over-year to R40.7 billion; group EBITDA fell 22% to R10.4 billion.

• Headline earnings per share dropped 36% to 3,016 cents; return on capital employed was 23%.

• Net cash position improved to R16.3 billion, supporting a final dividend of 866 cents per share and a R1.2 billion share repurchase programme.

• Export sales grew 37% to 7 million tonnes, while coal production dropped 7% to 39.5 million tonnes.

• Cash cost per tonne increased by 32% to ZAR 638 per tonne.

Outlook and guidance

• Coal production and sales for 2025 are guided at 39.5–43.7 million tonnes, with export sales of 6.65–7.35 million tonnes.

• Sustaining capital guidance remains R2.5–3 billion; energy generation expected at 780–810GWh with new solar capacity.

• Focus on operational excellence, cost management, and ESG integration, with a refreshed safety strategy launching in April 2025.